CB Gold arranges $10-million financing

2012-11-19 16:44 ET - News Release


Mr. Fabio Capponi reports


CB Gold Inc. has entered into an agreement with BMO Nesbit Burns Inc. under which BMO Capital Markets has agreed to buy on a bought-deal basis by way of a short-form prospectus 11.12 million common shares at a price of 90 cents per common share for gross proceeds of $10,008,00. In addition, CB Gold has agreed to grant BMO Capital Markets an option, exercisable at any time until 30 days following the closing of the offering, to purchase up to an additional 1,668,000 common shares to cover overallotments, if any. In the event that the option is exercised in its entirety, the gross proceeds of the offering to CB Gold will be $11,509,200.

The net proceeds of the offering will be used for the continued exploration of the Vetas gold project and for working capital and general corporate purposes.

The offering will be conducted by way of a short-form prospectus to be filed by CB Gold in each of the provinces and territories of Canada, other than Quebec, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is expected to close on or about Dec. 10, 2012, and is subject to customary conditions and receipt by CB Gold of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.